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Course Catalog > Bonds > 200
Bonds 205: TIGRs, CATS, and LIONs

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1.
Compared to its face value, the issuing price of a zero coupon bond is _______.
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Much lower. Zero coupons are issued at deep discounts from their face values.
2.
CATS were securities issued by the US Treasury and sold by brokerage firms.
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False. CATS were securities issued by brokerage firms based on Treasury bonds that they purchased and placed in escrow.
3.
Compared to its face value, the issuing price of a CATS or TIGR was _______.
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Much lower. Like that of all zero coupon securities, the issuing price was deeply discounted.
4.
The units that Treasury-backed zeros are based on represent _______.
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Interest. Interest payments were divided into units as the basis of Treasury-backed zeros.
5.
Even though felines were issued by private firms, they were still relatively secure bonds.
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True. Even though they were issued by private firms, these bonds were based on Treasury securities held in escrow.